Investment opportunity in Ruataniwha Water Storage Scheme

Media Release

11 March 2014

Investment opportunity in Ruataniwha Water Storage Scheme

Qualified Hawke’s Bay investors are being given the opportunity to express their interest in investing in the Ruataniwha Water Storage Scheme.

Hawke’s Bay Regional Investment Company Ltd (HBRIC Ltd) has released a Preliminary Information Memorandum (PIM) calling for expressions of interest from qualified locals interested in a potential investment in the water storage scheme.

Interested parties are not being asked for money now. They have until the end of April to indicate their interest in the proposal, and will then be given detailed information on the investment opportunity via an Information Memorandum which will include modeled cashflows and further specific information that is currently commercially sensitive. The Information Memorandum is due for release in May 2014.

The Offer is for a minimum investment of $50,000 and will only be open to eligible investors who:

• have signed a water user agreement for water from the scheme; or

• are landowners within the Ruataniwha Water Storage Scheme irrigation footprint; or

• are Hawke’s Bay resident individuals or businesses,

and who are “eligible persons” for purposes of the Securities Act 1978.

Generally speaking, under the Securities Act, an “eligible person” must be certified as either “wealthy” (i.e., having net assets of at least $2,000,000 or having had an annual gross income of at least $200,000 for each of the last two financial years) or is experienced in the industry or experienced in investing money.

HBRIC Ltd Chairman Andy Pearce says for farmers who intend contracting water from the scheme, this is an opportunity to register an interest in an investment that can provide a natural hedge against water price changes.

“This is also an opportunity for individuals and businesses in Hawke’s Bay to register an interest in securing an investment in a large local project, which is anticipated to drive significant regional growth,” says Dr Pearce.

The Ruataniwha Water Storage Scheme is a proposed project to build and operate a dam, water storage and distribution infrastructure designed to deliver reliable irrigation to an expected 20,000 - 30,000 hectares of farmland in the Ruataniwha Plains in Hawke’s Bay.

The PIM is available on the Ruataniwha Water Storage Scheme page at www.hbrc.govt.nz

ENDS

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